IMF Urges Lenders To Join Ukraine Debt Deal

The International Monetary Fund (IMF) has urged all of Ukraine's creditors to support a debt restructuring deal.

In an open letter released on September 22, IMF Managing Director Christine Lagarde said, "High participation by all concerned Eurobond holders in the upcoming debt exchange is paramount, since Ukraine lacks the resources under the program to service its debts on the original terms."

The statement comes as an IMF mission arrived in Kyiv to assess Ukraine's commitment to reforms that would warrant the release of another portion of its $17.5 billion loan.

A creditor group that owns half of Ukraine’s sovereign bonds agreed last month to accept new terms that include a 20 percent principal writedown and a four-year maturity extension.

A group of smaller private lenders have reportedly refused to join the agreement, while Moscow is also demanding the December repayment of a $3 billion bond.